To bribe or not to bribe – it is a difficult decision for many business leaders today as they expand their market and operations to other countries for efficiency and more business opportunities. In many developing countries, bribery is an effective means for a new market entry to gain favorable treatment from the local government, or a business in general to win new contracts. Although bribery is prohibited in the law book of virtually every country, many international organizations still directly or indirectly engage in bribing local authorities where they operate, and suffering severe financial and reputation damage as a result. This paper will, using the model based approaches, focus on discussing ethical aspects of the problem.
First, we take a look at a recent example of corruption and bribery: SNC-Lavalin Group Inc, (“Reuters.com,” 2012) the largest engineering and construction company in Canada and top five Global Design firms in the world, has since early this year been under police investigation for $56 million in mysterious payments that were wrongly assigned to certain construction projects. SNC-Lavalin CEO stepped down in March 2012 after an internal investigation found he had authorized these payments. In May, the company was also alleged to have offered “huge bribes” to obtain a consulting contract overseeing the construction of a 6.5-kilometre bridge over the Padma River in Bangladesh.
Ethical issues identified in this case are the paying/taking of bribery and government neglect of control over the situation in foreign developing markets.
There are two active agents in a bribery transaction: the bribe payer - decision maker(s) of the business, and the bribe taker - often government officials or decision makers at client companies. Local governments can also be considered as active agents in bribery. Passive agents of bribery are the organizations which the payer and taker work for, other companies who pursue the same business, and...
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